IEX · 10-Q · 2026Q3 · Full report

Trade Policy and Tariffs

IDEX CORP /DE/ · 2026-10-28 · Importance 41 · Surprise 60

On February 20, 2026, the U.S. Supreme Court invalidated broad-based tariffs imposed under the International Emergency Economic Powers Act (IEEPA). IDEX collected substantially all anticipated refunds during the second quarter of 2026, with minimal impact continuing into the third quarter; for the nine months ended September 30, 2026, the refunds reduced Cost of sales by $22.7 million and Net sales by $13.1 million, increasing Gross margin by 60 basis points and diluted EPS by $0.10. The administration implemented new tariffs under alternative statutory authority, but tariffs enacted in 2025 and the first quarter of 2026 did not materially affect IDEX’s business or financial statements in the periods presented.

Key facts

• For the nine months ended September 30, 2026, expected customer rebates associated with tariff refunds reduced cost of sales by $22.7 million and net sales by $13.1 million, decreased organic sales growth by 1%, increased gross margin by 60 basis points, and contributed $0.10 to diluted EPS. source
• The administration implemented new tariffs under alternative statutory authority following the Supreme Court ruling and may continue implementing additional tariffs. source
• IDEX collected substantially all anticipated refunds of previously paid IEEPA tariffs during the second quarter of 2026, with minimal impact continuing into the third quarter of 2026. source
• For the three months ended September 30, 2026, revisions to estimated customer rebates associated with tariff refunds reduced cost of sales by $0.7 million and increased net sales by $1.6 million, increasing gross margin by 10 basis points and diluted EPS by $0.02. source
• Tariffs enacted in 2025 and the first quarter of 2026 did not have a material impact on IDEX's business or financial statements in the periods presented. source